Lego2, the Danish brand beloved by children and adults alike, has recorded increases in both sales and profits in the first half of this year.
The world’s largest toymaker – by both revenues and profits – increased consumer sales by double-digit percentages in Asia, western Europe and the US. This contrasts with other brands within the industry who are increasingly struggling to compete with digital devices and online games for children’s attention. Toymakers Mattel3 and Hasbro4 have reported significant sales drops in the first half of the year.
Chief Executive Niels Christiansen attributes Lego’s success in part due to the brand investing in its website and online store. “Covid-19 has brought acceleration with e-commerce. What would have taken one, two or three years has gone much faster. Over the last 18-24 months, we’ve invested behind our product portfolio, e-commerce, and our brand. Fundamentally, this is paying off. It’s less connected to where stores are closed or there are lockdowns,”5 he said, although he stresses that the brand still values its stores as important for giving customers the full brand experience.
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